anna, Author at We Buy Property

We’re paying more for your home as house prices rise the fastest for almost six years

Posted on December 4, 2020January 28, 2021 by anna

Good news for vendors who are looking for a quick sale. According to Nationwide, UK house prices have seen the sharpest rise in nearly six years, making them 6.5% higher than a year ago. That means, right now, we are paying more to our clients for their homes so that they can move quickly.

The rapid rate in which house prices have risen has been driven by a culmination of factors, including pent up demand from the nationwide lockdown, which subsequently propelled people to seek a change in lifestyle or more space to work from home. In addition, the stamp duty holiday on properties priced up to £500,000 has encouraged many to make a move.

However, housing market activity is likely to slow next year once the stamp duty holiday expires at the end of March and the furlough extension comes to an end. In September, the Centre for Economics and Business Research (CEBR) predicted that there will be a massive slump in UK house prices in 2021, by nearly as much as 14 per cent.

In addition, there are a number of reports saying that basic costs for shopping and bills will go up following Brexit which will impact people’s ability to pay a bigger mortgage, therefore putting the brakes on the moving frenzy we have seen over the last few months.

The house price growth we have seen is simply not sustainable alongside macroeconomic influences such as shrinking economic growth, a possible ‘No Deal’ Brexit and most crucially, rising unemployment.

According to a report in the Independent, historically, rises in unemployment result in falls in house prices. For example, when unemployment in Britain rose during previous recessions, 1993 and 2008, house prices fell by 20 per cent on both occasions.

In the three months to August this year, the unemployment rate stood at 4.5 per cent. Although the housing market has, so far, appeared to buck against the trend of falling as unemployment rises, the true scale of unemployment is not yet being realised due to the furlough scheme. With huge retail stores such as Debenhams collapsing, unemployment is likely to rise sharply next year.

Savvy home movers will sell now at the height of the market and, if they can, wait to buy and see what happens next year because they may well get more for their money.

If you need to move or want to sell quickly, we are happy to have a no-obligation chat with you about buying your home for cash. We aim to complete transactions within a matter of weeks.

Phone number: 0207 449 9797

Email: info@webuyproperty.com

Problems selling when your property chain collapses

Posted on November 27, 2020January 13, 2021 by anna

A property chain is when a number of buyers and sellers are linked together because each of their transactions depend on one another. For example, a buyer needs to complete the sale on their current home in order to finance the purchase of their new home.

A chain begins with a buyer who does not need to sell anything, for example, a first time buyer or investor, and ends with someone who is selling but not going on to buy another property, for example, they are moving abroad or selling the home of a relative who has passed away.
A chain is then made up of all the properties being bought and sold in between this, and can involve several properties which must all transact at a similar time so that those involved can move to their new property.

Problems occur when one link in the chain holds up the moving process for everyone, such as when a buyer in the middle of a chain suddenly finds out they cannot get the mortgage they need or perhaps they have to pull out of a sale for personal reasons. This can result in the whole chain breaking down and having to start from the beginning of the process.

In addition to a chain being made up of numerous buyers and sellers, each of these will be working with different estate agents, surveyors, solicitors and mortgage lenders. A smooth moving process relies on all of these parties working to a similar timeframe and with one another.

For some people, a property chain breaking down is not just extremely disappointing but can be disastrous if they are in a position where they have to move by a certain time.
As move closer to the end of the Stamp Duty holiday (on properties up to £500,000) which ends on 31^st March 2021, more people are concerned about their transactions falling through, meaning they would have to pay more Stamp Duty.

Most recently, WeBuyProperty stepped in to help a homeowner whose buyer had pulled out at the last minute. The couple had to relocate due to a new job and needed to do so quickly to ensure their child was at her new school for the start of the academic year. They were unable to find a new buyer quickly enough so we purchased the property from them, effectively becoming the end of the chain.

Unfortunately, there is not much you can do if the property chain breaks. In addition to the disappointment, buyers can lose legal fees, surveying costs and their mortgage arrangement. If the transaction has already exchanged, the buyer will also lose their deposit.

If your transaction has slowed and you are concerned there is a chance your chain may break down, speak to your estate agent and get an update as soon as possible. If your chain has already broken and you need to move quickly, we may be able to help with a cash purchase.

Why not get in touch with a member of our team and see how we can help you!

Phone number: 0207 449 9797
Email: info@webuyproperty.com

Tired of Living in a Flat?

Posted on November 20, 2020January 28, 2021 by anna

If you own a property and are considering selling up, you will almost certainly be aware of the mini property market boom. This has resulted in the average property price increasing by 7.5 per cent year-on-year, hitting a new record high, according to Halifax bank, as well as an estimated 140,000 more home sales than last year currently waiting to be completed.

The issue of trying to sell a flat in the current circumstances…

However, not all is so rosy if you are looking to sell a flat. Covid-19, the subsequent lockdowns and our new found remote way of working, has led to a surge of flat-owners wishing to sell up and move to somewhere with more space and more land, or at best with a garden / outdoor space.

The issue is that with so many having the same idea, the demand for flats has diminished and owners, unlike those selling a house, are finding it difficult to find a buyer. This is of most concern to those who don’t just have a desire to move, but a strong need, such as a new job in a different location, attempting to be in the catchment area of a school in time for the application deadline or needing to sell for financial reasons.

Most recently, there has even been reports (in The Times) of some estate agents not wishing to take on any more one or two bedroom apartments unless the vendors are willing to accept a significantly reduced price because supply is far outweighing demand.

There are also three other factors at play which are contributing to the demise of the flat:

Typical buyers – Since flats are more affordable on the whole than houses, they have always been a good option for first-time buyers taking that initial step onto the property ladder. Unfortunately, many young people work in sectors which have been most impacted by the pandemic including hospitality, retail and travel which has contributed to the decline in demand.
Cladding – Many buyers have been prevented from purchasing flats in buildings which have cladding that has not yet had an EWS1 form signed off to prove the building is safe. (Read more in our blog HERE)
Leasehold Scandal – Four of Britain’s biggest developers are currently being investigated after buyers argued they are caught in a leasehold trap of rising ground rents and unfair fees.

Of course, there will always be a market for flats, and in time it is likely we will see a resurgence in demand once again. However, if you are in a position where you need to move now and are struggling to sell, We Buy Property will review your property and may be able to make you a cash offer.

To have a no obligation chat about your circumstances, Get in touch with one of the team on:

Phone: 0207 449 9797
Email: info@webuyproperty.com

The Impact of Lockdown on the Housing Market

Posted on November 16, 2020January 28, 2021 by anna

When the country was locked down back in March, it was unlike anything anyone had ever experienced before and every single person and industry was facing the unknown.

Although catastrophic in so many ways, it was somewhat novel. The sun was shining and each week there appeared to be more and more help being made available. The country rallied and united in support of the NHS and each other, and there appeared to be a caring, sharing sense of community.

Spending more time at home…

People spent more time at home with family and they reevaluated their lives and living arrangements. Many realised that the world of work had, quite possibly, changed forever, and this opened the door to possibility – a larger house, a new location in the countryside, or even a downsize to free up equity.
As lockdown eased, the pent-up demand built from two years of Brexit talk and three months of lockdown resulted in a house-sale frenzy.
Now let’s fast forward seven months and try to start with a positive. Despite the impending second lockdown presenting an extremely worrying time for many, there are, if only a few, some positives. Schools, for now, will remain open meaning parents can continue to work, and unlike before, many people and businesses have managed to adapt and evolve their usual working practice in order carry on in some capacity. Of course, I fully acknowledge that this will be of little comfort to those sectors which have been ravaged by the pandemic, and sincerely hope that the support being offered is increased to help more businesses survive.
Fortunately, at present, it would appear the housing market can continue to operate. For me, enabling people to move in order to fulfil their personal living requirements so as to have a safe, stable and affordable environment to live is essential. A fluid housing market also breaths life into so many other sectors of business, from mortgage brokers and conveyancers, to removal firms, tradespeople and furniture suppliers, to name but a few.

Sadly, I think the biggest challenge we will face in the housing industry this time is sentiment. The weather has turned and so too has the mood of the country. Despite the furlough scheme having now been extended, many people have already lost their jobs. Businesses, which thought and hoped the world would be back to normal by now, are having to look at their forecasts for 2021 and significantly revise them down.
We’ve seen mortgage lenders withdrawing many of their deals on low-deposit home loans in a bid not only control the volume of business, but because some are nervous of a possible house-price crash next year. This particularly impacts first-time buyers who typically put down 5 or 10 per cent of the house price as a deposit. Many lenders have also raised interest rates over past weeks, even as the Bank of England base rate has remained at its record low of 0.1 per cent.
With Covid cases on the rise, people are undoubtedly going to be more cautious. Vendors will likely only accept viewings for serious proceedable buyers, and similarly buyers will only want to view houses they have a strong interest in.
Yes, good houses have been selling very quickly, but what we are starting to see is that more houses means more choice. This means buyers are willing to hold on for the perfect home and those which have not sold yet, perhaps because they are not in the best location, do not have a garden or lack curb appeal, are remaining unsold for longer.
Most worryingly is also the rise in the number of people who may be forced to sell their homes because of loss or change of job and with so many house transactions being processed there is a real delay in completions.

If you are in a position where you wish to sell your property quickly and would like to discuss a quick-sale option, you can call us at WeBuyProperty for a no obligation chat.
Tommy Hughes, Director
Phone number: 0207 449 9797
Email: info@webuyproperty.com

Will 6 months’ notice mean more landlords sell with tenants in situ?

Posted on November 9, 2020January 13, 2021 by anna

Legislation has been introduced so that landlords must now give tenants 6 months’ notice before they can evict tenants until March 2021, except in the most serious of cases, such as incidents of anti-social behaviour and domestic abuse perpetrators.

The Second Wave…

However, as the global pandemic enters a second wave, it is hard to see that this rule will be reversed in spring. Despite many landlords supporting their tenants during this difficult period with reduced rent or a rent holiday, with the furlough scheme now ended and unemployment on the rise, some landlords are being forced to consider an exit strategy.

Tommy Hughes, Managing Director of WeBuyProperty, says: “We have been contacted by a number of landlords who, for their own personal financial reasons, desperately want to sell their buy-to-let property. The problem is that the six months’ notice period means it will be some time before they can sell with vacant possession, and even longer if they have to go through eviction proceedings. To get around this, we’re finding that some landlords are enquiring about selling their property with their tenant(s) in situ.”

However, selling a property with a “tenant in situ” or “sitting tenant”, terms used to describe a person (or people) who has a legal tenancy which entitles them to occupy a property, is not without its challenges because the market for a house with a sitting tenant is generally quite small.

By having a tenant in situ, landlords limit the number of people who would be interested in buying their property as it rules out anyone who would want to purchase it to live in themselves. That then leaves landlords or investors, but this can still prove difficult because many banks and building societies will not give a mortgage on a property with a sitting tenant.

One quick and straightforward solutions for landlords who do not want to wait for vacant possession could be to sell their property to a cash buyer, complete with tenant in situ. Although landlords are less likely to achieve full market value, a cash buyer will be able to give a guaranteed completion in a fairly quick time-frame without the hassle of having to wait to evict the tenant.

“From an investors point of view, buying a property with a tenant in situ can be a win-win, purchasing a property with a ready-made income. With tenants less likely to move in the current climate it also means that income could be guaranteed for longer.”

For advice about selling a property with a tenant in situ, contact WeBuyProperty

Phone number: 0207 449 9797
Email: info@webuyproperty.com

Are you struggling to sell because of cladding?

Posted on October 2, 2020January 13, 2021 by anna

In January this year, Government fire safety guidance on external walls of apartment blocks, which used to only apply to blocks taller than 60ft, was extended to buildings of all heights with any cladding.The new safety advice was issued in response to the Grenfell Tower fire in 2017 but does not only apply to buildings with the type of cladding that caused the Grenfell fire.

Why is this a problem for homeowners?

The new requirement of an EWS1 form not only demonstrates that a building is safe but was brought in to give lenders more confidence in providing mortgages on multi-storey buildings following the Grenfell Tower fire.

However, there is a huge backlog in getting the forms due to the volume of properties which now fall under this requirement (an additional 2.7 million) and the very limited number of chartered fire engineers who can carry out the inspections.

This means that property sales are collapsing because to follow official guidance, many lenders are requesting an EWS1 form to show the building is safe. Without the form, buyers are unable to get a mortgage which means sellers are left trapped and unable to move.

We have been working with vendors who are unable to wait for the building inspections to be carried out due to a change in circumstances, such as a new job or growing family, and therefore need to sell quickly. We buy the property from them, with transactions completing in a matter of weeks or a timeframe to suit their requirements, and then we will pursue the building safety sign-off.

Whose responsibility is it?

To get these guarantees of safety, flat owners usually have to apply to the freeholders of the building. The freeholders then have to find a company to take samples of cladding from the external wall and have them sent away for testing.

However, freeholders are not obliged to get the building signed off if the building’s cladding is classified as low-risk. The problem for vendors is that some banks are so nervous that these flats could be declared unsafe in future, that they are requesting the EWS1 forms regardless.

WARNING: We have also read reports by Which? that leaseholders are being duped into paying thousands of pounds to fraudsters who are providing fake EWS1 inspection forms.

We have spoken to some flat owners who are unable to sell, even though the cladding material on their building is not combustible, as the freeholder will not pay for it to be tested. The issue can also affect those flat owners who are simply looking to re-mortgage. Even more worrying, is that some homeowners are being told it could take years for their building to be declared safe.

This is a situation that WeBuyProperty is monitoring very closely and will update our readers should we be informed of any updates. In the meantime, if you are in this situation and wish to discuss options for selling your property without the EWS1, call us on 0207 449 9797.

Eviction Ban

Posted on September 2, 2020January 28, 2021 by anna